Executive Compensation Planning

As the economy remains in a state of flux and companies need to account accurately for every dollar, it is more crucial than ever to have clear executive compensation plans in place that produce desired business results and minimize the potential for confusion and litigation. Sonnenschein is uniquely situated to help our clients achieve both objectives, as we have extensive experience in counseling both individual executives and companies in connection with the range of compensation issues.

Contract negotiation. Comfortable on either side of the table, Sonnenschein regularly represents employers and executives of both public and private companies in the design and negotiation of employment contracts, compensation and incentive structures, and separation agreements. Together with our colleagues, we frequently advise individuals on the tax and estate implications of stock compensation and severance arrangements and other employment-related transactions. With our bankruptcy group we offer unique insights into providing appropriate compensation packages for executives of financially-challenged businesses and debtors-in-possession.

Incentive plan development. We work with corporate clients or their outside board members in many different industries to develop, enhance, and modify incentive plans. Our expertise includes not just the tax and corporate basics, but also detailed knowledge of corporate governance standards, securities, and accounting ramifications, and potential ERISA and employment issues. We create sophisticated incentive plans for stock options, restricted stock, stock appreciation rights, deferred stock and deferred rights, performance shares and performance units. We also devise suitable phantom stock plans and an array of deferred compensation arrangements for executives of retailing, financial, technology, and manufacturing concerns, among others, as well as not-for-profit enterprises. Companies also regularly seek our advice on the treatment of incentive arrangements in connection with change-in-control situations or their desire to institute change-in-control protections.

We are confident that our experience in dealing with executive compensation planning on behalf of both individuals and companies will allow us to address any concern you have.